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2025 Supreme(Online)(UK) 972208

HIGH COURT OF UTTARAKHAND
Pankaj Purohit, J
Vinit Kumar Goel – Appellant
Versus
State of Uttarakhand – Respondent
Criminal Misc. Application No.60 of 2015



Advocates:
For the Appellants/Petitioners: Arvind Vashistha, Sidhartha Sah
For the Respondents: Vikash Uniyal, Navneet Kaushik

Criminal proceedings stemming from contractual or administrative disputes must be quashed under the court's inherent powers if the complaint is mala fide, aims to pressure the accused for personal or civil gain, and lacks the essential ingredients of criminal offenses, constituting an abuse of legal process.

Headnote:(A) Code of Criminal Procedure, 1973 - Section 482 - Quashing of criminal proceedings - Abuse of process - Dispute arising from contractual and administrative relationship - Where civil remedies have been invoked unsuccessfully, criminal law should not be used as a tool to pressurize or cause harassment - High Court can exercise inherent powers to prevent abuse of process and secure ends of justice. (Paras 13, 14, 15)

(B) Indian Penal Code, 1860 - Sections 417, 418, 467, 468, 469, 471 and 120-B - Forgery, cheating and conspiracy - Allegations of document manipulation in internal corporate correspondence - Lack of essential ingredients of criminal offences - Absence of prima facie case of forgery or intentional deception - Proceedings liable to be quashed if mala fide. (Paras 5, 6, 9, 13)

Facts of the case:
The complainant, after failing to secure favourable results in civil and arbitral proceedings regarding a business dealership contract, initiated a criminal complaint against the management. The complaint alleged forgery and manipulation of official records and internal communications. The applicants sought to quash the criminal proceedings, contending that the issues were purely civil or administrative and that the complaint was filed as a tactical measure to exert undue pressure after failing to settle disputes in the appropriate adjudicatory forums.

Findings of Court:
The court determined that the dispute was rooted in a contractual relationship and that the attempt to invoke criminal jurisdiction was clearly motivated by mala fide intentions. It observed that the allegations, when taken at face value, did not constitute the essential ingredients of the criminal offenses charged. The court emphasized that the proceedings were an abuse of the judicial process intended to harass the accused.

Issues: The central issues were whether a criminal complaint based on a contractual business disagreement involving administrative notings constitutes a cognizable offense and whether the continued prosecution serves as a misuse of the judicial system warranting intervention through inherent powers.

Ratio Decidendi: Criminal proceedings should be quashed when they are manifestly attended with mala fides, arise from private grudges or failed civil litigation, and occur where the allegations do not prima facie disclose the commission of any criminal offense, as such complaints constitute an abuse of the legal process.

Result: Criminal proceedings quashed.

Table of Content
1. summary of factual background and procedural history. (Para 1 , 2 , 3)
2. parties' contentions on whether disputes are civil or criminal. (Para 4 , 5 , 6 , 7 , 8)
3. competing arguments regarding alleged forgery and document fabrication. (Para 9 , 10 , 11 , 12)
4. inherent power to quash proceedings to prevent abuse of process. (Para 13 , 14 , 15)
5. final order quashing lower court judgments and criminal proceedings. (Para 16 , 17)

By means of present C482 application, applicants have put to challenge the judgment and order dated 04.03.2014 passed by learned Civil Judge (Jr. Division)/Judicial Magistrate, Narendra Nagar, Tehri Garhwal in Criminal Case No.369 of 2010, Samay Singh vs. Vinit Kumar Goel & another as well as the judgment and order dated 23.12.2014 passed by learned District and Sessions Judge, Tehri Garhwal in Criminal Revision No.29 of 2014, Vinit Kumar Goel & another vs. State of Uttarakhand & another and the entire proceedings of Criminal Complaint Case No.369 of 2010, Samay Singh vs. Vinit Kumar Goel.

2. The brief facts of the case are that an agreement was executed between Hindustan Petroleum Corporation Limited (HPCL) and respondent no. 2 on 01.03.2008 for the dealership of liquefied petroleum gas (LPG) within the distribution area of Narendra Nagar and a radius of 15 kilometres within District Tehri Garhwal. An appointment letter of the same date was issued by HPCL. The said agreement contained an arbitration clause. A routine inspection was conducted by the Executive Sales Officer, Ghaziabad Sale Area, and Sales Officer, Indian Oil Corporation, Dehradun Sale Area, on 19 and 20 February 2009, during which various irregularities were detected. Consequently, a show cause notice dated 25.02.2009 was issued to respondent no. 2, calling for an explanation within fifteen days. The respondent submitted his reply dated 02.03.2009, and after due consideration, HPCL imposed a monetary penalty of Rs.3,52,000/- through order dated 13.05.2009. Aggrieved, the respondent preferred Writ Petition No. 770 (M/S) of 2009 before this Court, which was disposed of with directions to deposit the penalty amount. Subsequently, further inspections revealed additional irregularities, and a fresh show cause notice dated 28.11.2009 was issued. The respondent submitted a written reply dated 31.12.2009, upon which the Chief Regional Manager concluded that the conduct of the respondent no.2 amounted to violation of contractual and statutory obligations.

3. Accordingly, by order dated 12.04.2010, the sale and supply operations of M/s Dev Bhumi Gas Service were suspended. The respondent, being aggrieved, filed Writ Petition No. 530 (M/S) of 2010, which was dismissed by this Hon’ble Court vide order dated 16.04.2010, holding that an alternative remedy under the Arbitration and Conciliation Act, 1996 was available. Thereafter, the respondent no.2 preferred an application under Section 9 of the said Act before the District Judge, Ghaziabad, registered as Arbitration Case No. 213 of 2010, but failed to secure any interim relief. Thereafter, respondent no. 2 filed the present criminal complaint before the learned Judicial Magistrate, Narendra Nagar, District Tehri Garhwal, levelling allegations of forgery and manipulation of documents. The applicants contend that the complaint is frivolous, motivated, and filed solely to obstruct the lawful discharge of official duties by the HPCL officers. Hence, this C 482 application.

4. Learned counsel for the applicants submits that the disputes raised in the impugned complaint were already pending before the competent adjudicatory forum. By instituting the present complaint, respondent no. 2 has deliberately sought to give a criminal colour to what is essentially a civil dispute, in order to exert undue pressure upon the applicants. It is further submitted that respondent no. 2 himself has, in clear terms, admitted that the contents of the documents in question were never altered

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